Search results
May 2, 2022 · Gas prices were up 31.2% on an annual average basis in 2021 and were 12.8% higher than they were in 2019, before the COVID-19 pandemic. A litre of fuel in a gasoline- or diesel-powered passenger car goes a lot further than it would in a truck.
Apr 6, 2022 · While gas prices typically don't hurt overall unit demand, consumers may start to choose more lower-margin, fuel-efficient passenger cars or even electric vehicles over higher-margin...
- Wayne Duggan
Sep 6, 2024 · Gasoline prices tend to increase when the available gasoline supply decreases relative to real or expected gasoline demand or consumption. Gasoline prices can change rapidly if something disrupts crude oil supplies, refinery operations, or gasoline pipeline deliveries.
May 18, 2022 · Canadians continue to contend with record-high gas prices. Meanwhile, rising fuel costs are also driving up the price of everything else as transport costs get passed on to consumers. Those...
- What Is The Price Elasticity of Gasoline Demand?
- The Conventional View
- New Estimation Methods, New Data
- Reconciling These Findings with Earlier Work
- What Explains The Responsiveness of Consumers?
There is evidence that periods of rising real gasoline prices are associated with reduced gasoline consumption. The price elasticity of gasoline demand is a widely used measure of the responsiveness of gasoline consumption to a change in gasoline prices that is not driven by demand. An elasticity value of -1, for example, means that for every 1 per...
A large body of empirical literature dating back to the 1970s and 1980s has reported estimates of the short-run price elasticity of gasoline demand. Some of these studies rely on time series data of gasoline usage and average prices at the national level. Other studies exploit variation in gasoline prices across regions or countries. There is a wid...
As improved estimation methods have been developed and as higher-quality data have become available, longstanding estimates have been called into question. One new development has been an increasing recognition of the importance of isolating variation in gasoline prices that is not driven by consumers’ demand for gasoline. In one of the first studi...
Thus, recent estimates of the short-run price elasticity of gasoline demand are five to 25 times larger than traditional estimates. An obvious question is why do economists disagree so much on this important question? The analysis by Levin and his coauthors provides valuable clues. They document that estimating the gasoline demand elasticity based ...
The interesting economic question is why the fuel consumption responses are so strong. Clearly, in the short run, consumers won’t choose to replace their vehicle with a more fuel-efficient one. There are other margins of adjustment, however. For example, consumers may reduce their discretionary driving. The data in the study by Knittel and Tanaka f...
Prices for goods rose 4.7% in 2021 after a 0.2% decline the previous year, with prices increasing for items such as passenger vehicles (+5.1%), furniture (+7.3%) and household equipment (+3.6%). To learn more. Prices and price indexes portal (statcan.gc.ca)
People also ask
Are rising gasoline prices associated with reduced gasoline consumption?
Do gasoline prices follow crude oil prices?
What is the price elasticity of gasoline demand?
Are gas prices going up in 2021?
Are rising gas prices driven by consumer demand?
When do gasoline prices go up?
Nov 17, 2022 · U.S. consumers closely watch the twists and turns of gasoline prices, with many hunting for the lowest pump price or reducing consumption if prices are very high. But how do volatile fuel prices and consumer demand track over the long run?
